GOVERNMENT: Locking the Door

When a $10,000-a-year official of the
RFC, John Hagerty, took over the $30,000-a-year presidency of Waltham
Watch Co. (TIME, May 9), many a congressional temper flared. For
Hagerty, as the RFC's Boston manager, had recommended the $9,000,000
loan (later cut to $6,000,000) that enabled Waltham to reorganize. A
Senate committee began digging into the RFC's records, found that the
RFC had been an open door to high-salaried jobs in other companies
which it had bailed out. In 4½-years, 20 RFC employees had joined
companies that were in debt to the RFC. Like...